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The
New York-based company said Friday it earned a profit of $2.46
billion, or $3.53 a share, compared to a profit of $2.17
billion, or $3.04 a share, in the same period a year earlier.
The earnings were roughly in line with analysts' forecasts,
according to FactSet.
As it has been for several quarters, AmEx continues to get its
cardmembers to spend heavily on their cards with perks and
rewards. The company did a refresh of the Platinum Card in
September, adding benefits like a $400 annual dining credit but
at the same time increasing the annual fee to $895.
AmEx customers spent $506.2 billion on their cards in the fourth
quarter, up from $464 billion in the same period a year ago.
That brakes down to $6,696 per card member. Cardmembers are also
keeping a balance as well. AmEx now has $213 billion in credit
card loans on its books, compared to $199.1 billion a year
earlier.
But despite the higher fee, the company continues to add
customers, particularly younger ones. For the first time in
company history, Gen-Z and Millennials are collectively spending
more on their AmEx cards than Gen-X, historically the company's
biggest spending cohort, said Chief Financial Officer Christophe
Le Caillec.
AmEx gave a forecast for 2026, expecting earnings per share of
$17.30 to $17.90. The company also plans to increase the
quarterly dividend from 82 cents a share to 95 cents a share.
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